Biofuel output to double by 2015

Australia's biofuel production is forecast to more than double by 2015 as new capacity is installed and as demand for alternative fuels to gasoline increases, a private consultancy forecast on Wednesday.

Australia's installed biofuel annual capacity is forecast to rise to 1.519 billion litres by 2015 from 636 million litres in 2010, APAC Biofuel Consultants said in a report.

The firm said installed ethanol capacity was forecast to rise to 910 million litres by 2015 from 350 million litres in 2010 as some states increased blended fuel mandates promoting ethanol consumption.

The mandates, plus growing use of biofuels as alternative to crude oil-based fuel, would see biodiesel capacity rise to 609 million litres by 2015 from 286 million litres in 2010, it said.

The rise in biodiesel production may result in Australia needing to import close to 1.4 million tonnes of soybeans a year unless it develops a sustainable production base, the report said.